Baker Hughes Company Announces Fourth Quarter and Total Year 2021 Results
- Orders of $6.7 billion for the quarter, up 24% sequentially and up 28% year-over-year
- Revenue of $5.5 billion for the quarter, up 8% sequentially and flat year-over-year
- GAAP operating income of $574 million for the quarter, up 52% sequentially and favorable year-over-year
- Adjusted operating income (a non-GAAP measure) of $571 million for the quarter, up 42% sequentially and up 23% year-over-year
- Adjusted EBITDA* (a non-GAAP measure) of $844 million for the quarter was up 27% sequentially and up 10% year-over-year
- GAAP diluted earnings per share of $0.32 for the quarter which included $(0.08) per share of adjusting items. Adjusted diluted earnings per share (a non-GAAP measure) were $0.25.
- Cash flows generated from operating activities were $773 million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $645 million.
The Company presents its financial results in accordance with GAAP. However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see reconciliations in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures.” Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
*Adjusted EBITDA (a non-GAAP measure) is defined as operating income (loss) excluding depreciation & amortization and operating income adjustments.
LONDON & HOUSTON–(BUSINESS WIRE)–Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the fourth quarter and total year 2021.
|
|
Three Months Ended |
|
Variance |
|||||||||
|
(in millions except per share amounts) |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over year |
||||||
|
Orders |
$ |
6,656 |
$ |
5,378 |
$ |
5,188 |
|
|
24 |
% |
28 |
% |
|
Revenue |
|
5,519 |
|
5,093 |
|
5,495 |
|
|
8 |
% |
— |
% |
|
Operating income |
|
574 |
|
378 |
|
182 |
|
|
52 |
% |
F |
|
|
Adjusted operating income (non-GAAP) |
|
571 |
|
402 |
|
462 |
|
|
42 |
% |
23 |
% |
|
Adjusted EBITDA (non-GAAP) |
|
844 |
|
664 |
|
770 |
|
|
27 |
% |
10 |
% |
|
Net income attributable to Baker Hughes |
|
294 |
|
8 |
|
653 |
|
|
F |
(55 |
)% |
|
|
Adjusted net income (loss) (non-GAAP) attributable to Baker Hughes |
|
224 |
|
141 |
|
(50 |
) |
|
59 |
% |
F |
|
|
Diluted EPS attributable to Class A shareholders |
|
0.32 |
|
0.01 |
|
0.91 |
|
|
F |
(64 |
)% |
|
|
Adjusted diluted EPS (non-GAAP) attributable to Class A shareholders |
|
0.25 |
|
0.16 |
|
(0.07 |
) |
|
50 |
% |
F |
|
|
Cash flow from operating activities |
|
773 |
|
416 |
|
378 |
|
|
86 |
% |
F |
|
|
Free cash flow (non-GAAP) |
|
645 |
|
305 |
|
250 |
|
|
F |
F |
||
|
“F” is used in most instances when variance is above 100%. Additionally, “U” is used in most instances when variance is below (100)%. |
“We are pleased with our fourth quarter results as we generated another quarter of strong free cash flow, solid margin rate improvement, and strong orders from TPS. For the full year, we were pleased with our performance and took several important steps to accelerate our strategy and help position the Company for the future. Overall, 2021 proved to be successful on many fronts for Baker Hughes, with key commercial successes and developments in the LNG and new energy markets, as well as record cash flow from operations and free cash flow, and peer-leading capital allocation. I would like to thank our employees for their hard work and commitment to achieve our goals, deliver for our customers and move the Company forward,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.
“As we look ahead to 2022, we expect the pace of global economic growth to remain strong although slightly moderate compared to 2021. We believe the broader macro recovery should translate into rising energy demand for 2022 and relatively tight supplies for oil and natural gas, providing an attractive investment environment for our customers and a strong tailwind for many of our product companies.”
“We are very excited with the strategic direction of Baker Hughes and believe the Company is well-positioned to capitalize on near-term cyclical recovery and for long-term change in the energy and industrial markets. We look forward to another year of supporting our customers, continuing to advance our strategy, and delivering for shareholders in 2022,” concluded Simonelli.
Quarter Highlights
Supporting our Customers
OFS secured a contract with LUKOIL to begin developing 14 offshore wells in the Baltic Sea’s D33 field. The contract will feature the first-ever combined deployment of Baker Hughes’ electrical submersible pumps (ESP) and LUKOIL’s Permanent Magnet Motors (PMM) since the two companies announced a collaboration on energy efficient technologies in June 2021. Baker Hughes’ ESP technology has unsurpassed levels of efficiency, reliability, and performance, while LUKOIL’s PMM technology enables a 15-20% reduction in energy consumption compared to current artificial lift processes.
OFS also secured a two-year contract for technology and services for a major operator in the Permian Basin. The contract combines best-in-class technology and services from the Artificial Lift, Oilfield & Industrial Chemicals, and Reservoir Technical Services product lines, including the CENesis PHASE Artificial Lift system, which optimizes production, extends asset life, increases personnel safety, lowers lifting costs and reduces environmental footprint.
The TPS segment continued to maintain its LNG leadership. TPS secured a major contract from Bechtel to provide high-efficiency gas turbines and centrifugal compressors to support the expansion of the Pluto LNG onshore processing facility in Australia, which is operated by Woodside. The contract will provide six LM6000PF+ aeroderivative gas turbines, 14 centrifugal compressors and additional equipment for Pluto LNG’s second train, leading to an additional expected capacity of approximately 5 million tons per annum (MTPA) and helping to maximize efficiency and flexibility while lowering greenhouse gas emissions.
TPS secured a contract with NOVATEK PAO to provide advanced turbomachinery equipment for a feed gas boosting station in Russia. TPS will provide five turbo-compressors, driven by Frame 5/2D gas turbines, to support the facility, stabilizing the pressure and flow rate of feed gas to maintain maximum carrying capacity. Baker Hughes and NOVATEK have a long history of collaboration, and TPS’ gas turbines have operated successfully at NOVATEK’s projects since 2017.
OFE secured a major 10-year contract from Abu Dhabi National Oil Company (ADNOC) for the Surface Pressure Control (SPC) product line to manufacture, supply, store, and service surface wellheads and tree systems. The contract includes ADNOC’s onshore and offshore fields in the UAE as well as a long-term service contract to cover repair, maintenance and spares for the project’s equipment.
The DS segment continued to gain traction in multiple industrial end markets, particularly in the automotive and electronics sectors. The Waygate Technologies product line continued to lead in market share for industrial computed tomography (CT) systems, achieving record revenue in the fourth quarter for battery inspection and securing contracts with major electric vehicle manufacturers and battery suppliers in Europe and Asia.
Executing on Priorities
Baker Hughes and Shell signed a broad strategic collaboration agreement to accelerate the global energy transition. Shell will provide select Baker Hughes sites in the U.S. with power and renewable energy credits, as well as negotiate renewable power for Baker Hughes sites in Europe and Singapore. The two companies will also identify opportunities to accelerate each other’s transition to net-zero carbon emissions by 2050, such as Baker Hughes providing low-carbon solutions for Shell’s LNG fleet through technology upgrades and compressor re-bundles. Baker Hughes will also help Shell develop digital solutions to accelerate decarbonization across Shell’s global assets and operations. The two companies will also explore potential opportunities to co-invest and participate in new models to decarbonize the energy and industrial sectors.
Baker Hughes saw continued customer interest in carbon capture, utilization and storage (CCUS) applications. TPS secured a contract with Santos, a leading natural gas producer in Australia, to supply turbomachinery equipment for the Moomba CCS project, which will serve a gas processing plant and permanently store 1.7 million tons of carbon dioxide (CO2) annually. The equipment scope includes PGT25+G4 aeroderivative gas turbine, MCL compressor, and PCL compressor technologies to compress CO2 captured at Moomba CCS for transportation and subsequent injection for storage.
TPS continued to support the growth of the hydrogen economy, securing a contract with Air Products to supply advanced compression technology for the NEOM carbon-free hydrogen project in the Kingdom of Saudi Arabia. The contract follows the two companies’ hydrogen collaboration agreement announced in mid-2021.
Baker Hughes announced an approximately 20% investment in Ekona Power Inc, a growth stage company developing novel hydrogen production technology. The two companies have joined efforts to accelerate the scale up and industrialization of the technology by identifying suitable pilot projects and leveraging Baker Hughes’ leading turbomachinery portfolio as well as established technical expertise in providing modular and scalable solutions for global hydrogen and natural gas projects. Baker Hughes has also assumed a seat on Ekona’s Board of Directors.
DS continued to secure important contracts with key energy and industrial customers for condition monitoring and industrial asset management solutions. The Bently Nevada product line secured a contract with a major oil company to deploy System 1 asset management software as a standardized platform for enterprise-wide condition monitoring across 28 facilities worldwide. In addition, Bently Nevada secured a five-year service agreement for a major customer in the mining segment to provide asset strategy consulting services and support the customer’s digital transformation to help increase production and improve equipment reliability.
Bently Nevada also secured a contract with Yara, one of the world’s leading fertilizer companies, to enable digital transformation and improve asset reliability and efficiency. The enterprise-wide contract will enable data availability between Yara’s plant operations and the cloud across 23 sites using Bently Nevada’s latest System 1 asset management software, accompanied by a maintenance, support and services agreement.
Baker Hughes continued to invest in industrial asset management capabilities, announcing an investment and multi-year commercial alliance with Augury, a machine health solution provider, to deliver an expanded integrated asset performance management solution through Bently Nevada. Through the alliance, customers will benefit from end-to-end visibility into the health and performance of critical assets and the entire balance of plant, leading to reduced downtime, increased availability and lower maintenance costs.
Leading with Innovation
The BakerHughesC3.ai joint venture alliance (BHC3) secured several key contracts with oil & gas customers to deploy AI-based applications and accelerate digital transformation. In the Middle East, BHC3 and TPS secured a contract to deploy the BHC3™ Reliability application for LNG facilities and will deliver predictive insights at scale. The application will be deployed on the Microsoft Azure cloud platform and integrate with the Baker Hughes iCenter software to improve maintenance planning of critical industrial equipment and expand on the customer’s current monitoring services across its installed turbomachinery equipment.
The Druck product line in DS also saw increased demand for its pressure measurement technologies for the electronic component and semiconductor manufacturing sectors, including a significant contract with a major Asian semiconductor supplier. To support the sector’s rapid growth, Druck has also commercialized and improved the world’s fastest pressure controller, the PACE CM3, allowing customers to have greater flexibility, accuracy, speed and stability in pressure measurement.
Consolidated Results by Reporting Segment
Consolidated Orders by Reporting Segment
|
(in millions) |
Three Months Ended |
|
Variance |
||||||||
|
Consolidated segment orders |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over- year |
|||||
|
Oilfield Services |
$ |
2,567 |
$ |
2,412 |
$ |
2,266 |
|
6 |
% |
13 |
% |
|
Oilfield Equipment |
|
510 |
|
724 |
|
561 |
|
(30 |
) % |
(9 |
) % |
|
Turbomachinery & Process Solutions |
|
2,974 |
|
1,719 |
|
1,832 |
|
73 |
% |
62 |
% |
|
Digital Solutions |
|
605 |
|
523 |
|
528 |
|
16 |
% |
14 |
% |
|
Total |
$ |
6,656 |
$ |
5,378 |
$ |
5,188 |
|
24 |
% |
28 |
% |
Orders for the quarter were $6,656 million, up 24% sequentially and up 28% year-over-year. The sequential increase was a result of higher order intake in Turbomachinery & Process Solutions, Digital Solutions, and Oilfield Services, partially offset by lower orders in Oilfield Equipment. Equipment orders were up 38% sequentially and service orders were up 12%.
Year-over-year, the increase in orders was a result of higher order intake in Turbomachinery & Process Solutions, Digital Solutions, and Oilfield Services, partially offset by lower orders in Oilfield Equipment. Year-over-year equipment orders were up 42% and service orders were up 17%.
The Company’s total book-to-bill ratio in the quarter was 1.2; the equipment book-to-bill ratio in the quarter was 1.4.
Remaining Performance Obligations (RPO) in the fourth quarter ended at $23.6 billion, an increase of $0.1 billion from the third quarter of 2021. Equipment RPO was $8.2 billion, up 9% sequentially. Services RPO was $15.3 billion, down 4% sequentially.
Consolidated Revenue by Reporting Segment
|
(in millions) |
Three Months Ended |
|
Variance |
||||||||
|
Consolidated segment revenue |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over- year |
|||||
|
Oilfield Services |
$ |
2,566 |
$ |
2,419 |
$ |
2,282 |
|
6 |
% |
12 |
% |
|
Oilfield Equipment |
|
619 |
|
603 |
|
712 |
|
3 |
% |
(13 |
) % |
|
Turbomachinery & Process Solutions |
|
1,776 |
|
1,562 |
|
1,946 |
|
14 |
% |
(9 |
) % |
|
Digital Solutions |
|
558 |
|
510 |
|
556 |
|
9 |
% |
— |
% |
|
Total |
$ |
5,519 |
$ |
5,093 |
$ |
5,495 |
|
8 |
% |
— |
% |
Revenue for the quarter was $5,519 million, an increase of 8%, sequentially. The increase was driven by higher volume across all four segments.
Compared to the same quarter last year, revenue was flat, driven by higher volume in Oilfield Services, offset by Oilfield Equipment and Turbomachinery & Process Solutions.
Consolidated Operating Income by Reporting Segment
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Segment operating income |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over- year |
||||||||
|
Oilfield Services |
$ |
256 |
|
$ |
190 |
|
$ |
142 |
|
|
35 |
% |
81 |
% |
|
Oilfield Equipment |
|
23 |
|
|
14 |
|
|
23 |
|
|
68 |
% |
1 |
% |
|
Turbomachinery & Process Solutions |
|
346 |
|
|
278 |
|
|
332 |
|
|
24 |
% |
4 |
% |
|
Digital Solutions |
|
51 |
|
|
26 |
|
|
76 |
|
|
97 |
% |
(33 |
) % |
|
Total segment operating income |
|
676 |
|
|
508 |
|
|
573 |
|
|
33 |
% |
18 |
% |
|
Corporate |
|
(106 |
) |
|
(105 |
) |
|
(111 |
) |
|
— |
% |
5 |
% |
|
Inventory impairment |
|
— |
|
|
— |
|
|
(27 |
) |
|
— |
% |
F |
|
|
Restructuring, impairment & other |
|
11 |
|
|
(14 |
) |
|
(229 |
) |
|
F |
F |
||
|
Separation related |
|
(8 |
) |
|
(11 |
) |
|
(24 |
) |
|
27 |
% |
67 |
% |
|
Operating income |
|
574 |
|
|
378 |
|
|
182 |
|
|
52 |
% |
F |
|
|
Adjusted operating income* |
|
571 |
|
|
402 |
|
|
462 |
|
|
42 |
% |
23 |
% |
|
Depreciation and amortization |
|
273 |
|
|
262 |
|
|
307 |
|
|
4 |
% |
(11 |
) % |
|
Adjusted EBITDA* |
$ |
844 |
|
$ |
664 |
|
$ |
770 |
|
|
27 |
% |
10 |
% |
|
*Non-GAAP measure. |
|
“F” is used in most instances when variance is above 100%. Additionally, “U” is used in most instances when variance is below (100)%. |
On a GAAP basis, operating income for the fourth quarter of 2021 was $574 million. Operating income increased $196 million sequentially and increased $393 million year-over-year. Total segment operating income was $676 million for the fourth quarter of 2021, up 33% sequentially and up 18% year-over-year.
Adjusted operating income (a non-GAAP measure) for the fourth quarter of 2021 was $571 million, which excludes adjustments totaling $3 million before tax, mainly related to restructuring and separation activities. A complete list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1a in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted operating income for the fourth quarter of 2021 was up 42% sequentially, driven by higher volume and margin expansion across all segments. Adjusted operating income was up 23% year-over-year driven by margin expansion in Oilfield Services, Turbomachinery and Process Solutions, and Oilfield Equipment, partially offset by margin contraction in Digital Solutions.
Depreciation and amortization for the fourth quarter of 2021 was $273 million.
Adjusted EBITDA (a non-GAAP measure) for the fourth quarter of 2021 was $844 million which excludes adjustments totaling $3 million before tax, mainly related to restructuring and separation related activities. Adjusted EBITDA for the fourth quarter was up 27% sequentially and up 10% year-over-year.
Corporate costs were $106 million in the fourth quarter of 2021, flat sequentially and down 5% year-over-year.
Other Financial Items
Income tax expense in the fourth quarter of 2021 was $352 million. Income tax expense includes $103 million in charges that are recoverable as they related to liabilities indemnified under the Tax Matters Agreement with General Electric. These tax charges have an offsetting income in the other non-operating income line of our income statement.
Other non-operating income in the fourth quarter of 2021 was $208 million. Included in other non-operating income are gains from the change in fair value of our investment in ADNOC Drilling, and losses from the change in fair value of our investment in C3 AI.
GAAP diluted earnings per share was $0.32. Adjusted earnings per share was $0.25. Excluded from adjusted earnings per share were all items listed in Table 1a in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures” as well as the “other adjustments (non-operating)” found in Table 1c.
Cash flows generated from operating activities were $773 million for the fourth quarter of 2021. Free cash flow (a non-GAAP measure) for the quarter was $645 million. A reconciliation from GAAP has been provided in Table 1d in the section entitled “Reconciliation of GAAP to non-GAAP Financial Measures.”
Capital expenditures, net of proceeds from disposal of assets, were $129 million for the fourth quarter of 2021.
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
Oilfield Services
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Oilfield Services |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over- year |
||||||||
|
Revenue |
$ |
2,566 |
|
$ |
2,419 |
|
$ |
2,282 |
|
|
6 |
% |
12 |
% |
|
Operating income |
$ |
256 |
|
$ |
190 |
|
$ |
142 |
|
|
35 |
% |
81 |
% |
|
Operating income margin |
|
10.0 |
% |
|
7.9 |
% |
|
6.2 |
% |
|
2.1 |
pts |
3.8 |
pts |
|
Depreciation & amortization |
$ |
193 |
|
$ |
183 |
|
$ |
211 |
|
|
5 |
% |
(9 |
) % |
|
EBITDA* |
$ |
449 |
|
$ |
373 |
|
$ |
353 |
|
|
20 |
% |
27 |
% |
|
EBITDA margin* |
|
17.5 |
% |
|
15.4 |
% |
|
15.5 |
% |
|
2.1 |
pts |
2 |
pts |
Oilfield Services (OFS) revenue of $2,566 million for the fourth quarter increased by $147 million, or 6%, sequentially.
North America revenue was $742 million, up 4% sequentially. International revenue was $1,824 million, an increase of 7% sequentially, led by increases in Sub-Saharan Africa, the North Sea, Russia, Latin America and the Middle East.
Segment operating income before tax for the quarter was $256 million. Operating income for the fourth quarter of 2021 was up $66 million, or 35%, sequentially, driven by higher volume, price, mix and cost productivity.
Oilfield Equipment
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Oilfield Equipment |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over- year |
||||||||
|
Orders |
$ |
510 |
|
$ |
724 |
|
$ |
561 |
|
|
(30 |
) % |
(9 |
) % |
|
Revenue |
$ |
619 |
|
$ |
603 |
|
$ |
712 |
|
|
3 |
% |
(13 |
) % |
|
Operating income |
$ |
23 |
|
$ |
14 |
|
$ |
23 |
|
|
68 |
% |
1 |
% |
|
Operating income margin |
|
3.8 |
% |
|
2.3 |
% |
|
3.2 |
% |
|
1.5 |
pts |
0.5 |
pts |
|
Depreciation & amortization |
$ |
22 |
|
$ |
22 |
|
$ |
33 |
|
|
— |
% |
(32 |
) % |
|
EBITDA* |
$ |
46 |
|
$ |
36 |
|
$ |
56 |
|
|
26 |
% |
(18 |
) % |
|
EBITDA margin* |
|
7.4 |
% |
|
6.0 |
% |
|
7.9 |
% |
|
1.4 |
pts |
-0.5 |
pts |
Oilfield Equipment (OFE) orders were down $51 million, or 9%, year-over-year, driven primarily by lower order intake in Subsea Production Systems and from the removal of Subsea Drilling Services from consolidated OFE operations, partially offset by higher order intake in Services and Flexibles. Equipment orders were down 26% year-over-year and services orders were up 26% year-over-year.
OFE revenue of $619 million for the quarter decreased $92 million, or 13%, year-over-year. The decrease was driven by lower volume in Subsea Productions Systems and Surface Pressure Control Projects, and from the removal of Subsea Drilling Services from consolidated OFE operations. These decreases were partially offset by higher volume in Services.
Segment operating income before tax for the quarter was $23 million, flat year-over-year. The volume decrease year-over-year was offset by productivity gains.
|
*Non-GAAP measure. |
Turbomachinery & Process Solutions
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Turbomachinery & Process Solutions |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over- year |
||||||||
|
Orders |
$ |
2,974 |
|
$ |
1,719 |
|
$ |
1,832 |
|
|
73 |
% |
62 |
% |
|
Revenue |
$ |
1,776 |
|
$ |
1,562 |
|
$ |
1,946 |
|
|
14 |
% |
(9 |
) % |
|
Operating income |
$ |
346 |
|
$ |
278 |
|
$ |
332 |
|
|
24 |
% |
4 |
% |
|
Operating income margin |
|
19.5 |
% |
|
17.8 |
% |
|
17.1 |
% |
|
1.7 |
pts |
2.4 |
pts |
|
Depreciation & amortization |
$ |
30 |
|
$ |
30 |
|
$ |
31 |
|
|
1 |
% |
(2 |
) % |
|
EBITDA* |
$ |
375 |
|
$ |
308 |
|
$ |
362 |
|
|
22 |
% |
4 |
% |
|
EBITDA margin* |
|
21.1 |
% |
|
19.7 |
% |
|
18.6 |
% |
|
1.4 |
pts |
2.5 |
pts |
Turbomachinery & Process Solutions (TPS) orders were up $1,142 million, or 62% year-over-year. Equipment orders were up $1,067 million year-over-year and service orders were up $75 million or 7% year-over-year.
TPS revenue of $1,776 million for the quarter decreased $170 million, or 9%, year-over-year. The decrease was driven by lower equipment and projects revenue, partially offset by higher contractual services volume. Equipment revenue in the quarter represented 41% of total segment revenue, and Services revenue represented 59% of total segment revenue.
Segment operating income before tax for the quarter was $346 million, up $14 million, or 4%, year-over-year. The increase was driven primarily by favorable mix as a result of higher Services revenue.
|
*Non-GAAP measure. |
Digital Solutions
|
(in millions) |
Three Months Ended |
|
Variance |
|||||||||||
|
Digital Solutions |
December 31, 2021 |
September 30, 2021 |
December 31, 2020 |
|
Sequential |
Year-over- year |
||||||||
|
Orders |
$ |
605 |
|
$ |
523 |
|
$ |
528 |
|
|
16 |
% |
14 |
% |
|
Revenue |
$ |
558 |
|
$ |
510 |
|
$ |
556 |
|
|
9 |
% |
— |
% |
|
Operating income |
$ |
51 |
|
$ |
26 |
|
$ |
76 |
|
|
97 |
% |
(33 |
) % |
|
Operating income margin |
|
9.2 |
% |
|
5.1 |
% |
|
13.8 |
% |
|
4.1 |
pts |
-4.6 |
pts |
|
Depreciation & amortization |
$ |
22 |
|
$ |
22 |
|
$ |
25 |
|
|
1 |
% |
(11 |
) % |
|
EBITDA* |
$ |
73 |
|
$ |
48 |
|
$ |
101 |
|
|
53 |
% |
(28 |
) % |
|
EBITDA margin* |
|
13.1 |
% |
|
9.4 |
% |
|
18.2 |
% |
|
3.8 |
pts |
-5.1 |
pts |
Digital Solutions (DS) orders were up $76 million, or 14% year-over-year, driven by higher order intake in Digital Solutions businesses with the exception of the Nexus Controls business.
DS revenue of $558 million for the quarter increased $2 million, year-over-year, driven by higher volume in the Waygate Technologies, Process & Pipeline Services and Reuter-Stokes businesses, offset by lower volume in the Nexus Controls and Bently Nevada businesses.
Segment operating income before tax for the quarter was $51 million, down $25 million, or 33% year-over-year. The decrease year-over-year was primarily driven by lower cost productivity.
|
*Non-GAAP measure. |
2021 Total Year
Contacts
Investor Relations
Jud Bailey
+1 281-809-9088
investor.relations@bakerhughes.com
Media Relations
Thomas Millas
+1 713-879-2862
thomas.millas@bakerhughes.com
